Digital NSW - Test and Buy Innovation

Reference Guide for Government Digital Roles

Compiled: 01 January 2026
Source: digital.nsw.gov.au
Compiled from Digital NSW

Table of Contents

Test and Buy Innovation

Test and Buy Innovation

Guides, tools and templates to help use agile, innovation-friendly procurement methods successfully.

Test and Buy Innovation Thumbnail | Digital NSW

Buying innovation requires a different approach from buying established products

The ICT and digital sectors are constantly evolving, so knowing the latest or best solution isn’t always possible. Innovation procurement is an approach to procurement that supports buyers who need to turn to the market, but don’t know the best solution.

Innovation procurement focuses on the problem, or desired outcome, to attract a wide range of solutions. It uses multiple procurement stages to test out the best solutions, works closely with suppliers and builds confidence in implementation and investment decisions.

Innovation procurement provides access to the most recent market expertise and the latest technology. It can improve project outcomes and enhance the longevity of solutions.

Within these pages, you will find guidance to support you to adopt innovation-friendly practices and buy digital innovation in the NSW Government.

This guidance is being created progressively and some resources are still in development. The Test and Buy Innovation advisory team may be able to support you with prototypes or examples from other projects in the meantime. Contact the team via email: InnovationProcurement@customerservice.nsw.gov.au.

Understand Test and Buy Innovation and check if it’s right for your buying project.

Learn how to navigate the Test and Buy Innovation journey.

Set your innovation buying project up for success, step by step.

Identify, engage and manage the experts you need to support your project's success.

Attract innovation with a challenge statement for the market to solve.

Design a pathway that supports optimal innovation outcomes.

Learn how to apply your agency's risk framework to an innovation buying project and navigate amplified probity risks.

A guide to conducting market research  while staying open to innovation.

Learn how to apply an outcome-focused, staged approach to your buying project, while managing change.

Adopt a staged approach to business decisions that supports innovation and gathers evidence to manages risks.

Structure requirements that involve uncertainty and set outcome-focused valuation criteria.

Document how your market approach will  achieve buying objectives and comply with procurement policies.

Access agile method resources for project management and procurement.

Find relevant policy provisions so you can remain compliant while driving great outcomes.

Sourcing – coming soon

Manage uncertainty during the sourcing stage of buying innovation.

Buying pathway

A step-by-step guide for buyers designing a pathway to support optimal innovation outcomes.

Innovation Procurement - Buying Pathway | Digital NSW

Buying pathway resources

Make an informed decision about your procurement approach.

Explore options and build pathway that supports your outcome.

Examples from real projects with stages, milestones and timelines.

Scope for innovation

Attract innovation with a challenge statement for the market to solve.

Scope for innovation

Scope for innovation resources

From problem space to framing the challenge.

Uncover problem and frame desired outcome.

Write a challenge for the market to solve.

Learn the risks of assuming solutions.

Innovation eligibility checklist

Buying innovation involves a more agile and complex procurement approach compared to buying known solutions. Find out if Test and Buy Innovation is the right approach for your buying project.

Risk appetite when buying innovation

Understand how to take smart risks and manage them carefully to drive innovation outcomes, through five key risk concepts.

Staged evaluation criteria

Design outcome-focused stage criteria to progressively uncover more information.

Stakeholder management

Identify, engage and manage the experts you need to support your project’s success.

Photo of a magnifying glass on a yellow background, surrounded by wooden blocks featuring outline sketches of portraits

Stakeholder management resources

Define roles and responsibilities for better project outcomes and stakeholder satisfaction.

Identify, engage and manage the experts you need at each step to support your project success.

Risk of assuming the solution

Learn the risks of assuming the solution and the value of an outcome focused approach to buying innovation.

Develop your iteration plan

Navigate agile procurement for the public sector through structured and well-governed stages of testing, evaluation and decisions.

Person climbing steps toward larger lightbulbs, symbolising idea growth | Test and Buy Innovation | Digital NSW

Resources to develop your iteration plan

Plan for and manage changes to the strategy over the life of a procurement.

Tailor content to explain why change is expected, and provides confidence.

Learn about objectives, information needs, risks, costs, approvals and processes for each stage.

Agile principles and benefits

Discover agile project management principles, uncover benefits and access Digital NSW resources.

Build evidence for your case for change

Adopt a staged approach to business decisions that supports innovation while gathering evidence to manage the risks associated with uncertainty.

Photo of wooden blocks with dollar signs and lightbulbs arranged as stairs, symbolising investment leading to innovation

Tools to help gather market insights, develop an iteration plan and prepare a budget and business case

Photo of wooden staircase with arrows progressing from sad to happy faces, ending in a crumpled paper light bulb on a blue background

Conduct market research

Iteratively gather market intelligence across emergent domains that involve uncertainty.

View more

Photo of a line drawing of a person climbing wooden steps with crumpled paper light bulbs, symbolising idea development and progress

Develop your iteration plan

Learn how to apply an outcome focused, staged approach to your buying project.

View more

Photo of wooden blocks with dollar signs and lightbulbs arranged as a pyramid, ending with a lit bulb to symbolise financial growth and innovation

Set budget and business case

Adopt a staged approach to budget and business cases to encourage innovation.

View more

Define the buying project outcome

Hold an effective alignment session between the buyer and the procurement officer.

Prepare a Statement of Requirements

How to prepare a a Statement of Requirements that will attract innovation and support evaluation.

Library of innovation pathways

Examples from real projects with stages, milestones and timelines.

Build market insights iteratively

Combat uncertainty by using a multi-stage approach to iteratively gather insight, reduce risk and increase confidence.

Level of detail by stage

Make procurement more accessible to suppliers by setting ‘just in time’ criteria.

Procurement policy when buying innovation

Use the full extent of existing policy levers to adopt innovation-friendly procurement methods to drive great outcomes.

Photo of a hand pointing to top step of wooden block staircase with a crumpled paper light bulb above, symbolising reaching an idea

Tools to ensure compliance with policies while driving great outcomes

Pathway triage

Buying pathway

A step-by-step guide for buyers designing a pathway to support optimal innovation outcomes.

View more

The word probity written on blocks | Test and Buy Innovation | Digital NSW

Probity when buying innovation

Protect practices that foster innovation while navigating treatments for probity risk.

View more

Photo of a hand drawing a large light bulb above wooden blocks arranged in a pyramid, with smaller light bulbs on lower steps, symbolising idea development

Agile procurement framework

Access agile method resources for project management and procurement.

View more

Changes to expect

Plan for an manage changes to a buying strategy to adapt to new information and manage emerging risks.

Governance of change

Embrace changes, assess them against the project outcomes, document them and govern them appropriately.

Set mandatory criteria for innovation

Set flexible criteria upfront that allows suppliers time to meet mandatory criteria in later stages.

Document outcome-focused requirements

Structure outcome focused requirements that involve uncertainty.

Crumpled paper forming a lightbulb next to a pen, symbolising brainstorming and creativity | Test and Buy Innovation | Digital NSW

Document a Statement of Requirements resources

What a Statement of Requirements should look like to attract innovation.

Worked risk examples

Understand how to apply an innovation mindset to risk management through worked examples from a fictional buying scenario.

Set up for success

Find the building blocks to design your procurement pathways and tactics, align key stakeholders, define desired outcomes and frame a problem statement for the market.

Setup for success

Tools to set buyers up for a successful buying outcome

Photo of hand placing a wooden block to complete a light bulb puzzle on a pink background

Align your need with strategy

Discover whether a need should be addressed and how to approach it.

View more

Pathway triage

Buying pathway

A step-by-step guide for buyers designing a pathway to support optimal innovation outcomes.

View more

Mobilise your buying team

Mobilise your buying team

Get the right people together and on the same page before and during the project.

View more

Photo of a Hand drawing a line connecting blocks spelling 'PROBITY' to a lightbulb icon, symbolizing integrity leading to innovation

Probity when buying innovation

Protect practices that foster innovation while navigating treatments for probity risk.

View more

Photo of four wooden steps with faces from sad to happy, ending in a crumpled paper light bulb symbolising an idea

Conduct market research

Iteratively gather market intelligence across emergent domains that involve uncertainty.

View more

Agile procurement framework

Apply agile methodologies to support iterative testing and learning to achieve great innovation buying outcomes.

photo of hand drawing a large glowing light bulb above four smaller bulbs on shelves against a pink background

Agile procurement framework resources

Discover agile principles, uncover benefits and access resources.

Enable outcomes, support governance and public obligations.

Approach to categories and contracting

Navigate decisions around buying categories, rules and contracts, while remaining open to innovation.

Prepare your business case

Manage uncertainty by aligning business case and budget milestones with procurement stages while satisfying agency and supplier objectives.

Stacked wooden blocks with dollar signs and lightbulbs, representing funding and innovation | Test and Buy Innovation | Digital NSW

Resources

Estimate Total Contract Value (TCV), gain approval to spend and get proof of funding.

Focus on a strong case for change to support a market approach.

Document your market approach

Document how your market approach will achieve buying objectives and comply with NSW Government procurement policies.

Photo of a creative concept showing a light bulb formed from crumpled paper balls on a blue background, with black lines illustrating rays of light. A pen and additional paper balls are scattered to the right

Document your market approach resources

Adapt buying strategy templates for uncertainty and complexity

Work with uncertainty in buying categories and contract templates.

Concisely communicate key sections of the tender documents in plain English

Stakeholder roles and responsibilities

Define stakeholder roles and responsibilities for successful buying project management, better project outcomes and greater stakeholder satisfaction.

Agile buying for the public sector

Learn how agile procurement can enable innovation outcomes, support governance and fulfil pubic sector obligations.

Risk management when buying innovation

Balance risk and reward to achieve innovation outcomes while meeting procurement requirements.

Hands walking up steps to light bulb | Test and Buy Innovation | Digital NSW

Risk management resources to support buying innovation

Understand how to take smart risks and manage them carefully to drive innovation outcomes, through five key risk concepts.

Augment existing risk management frameworks by embedding an innovation risk mindset into each risk management step.

Understand how risks are managed through two fictional scenarios.

Buy, build or borrow?

Answer the key questions and consider the advantages and disadvantages of buying, building or borrowing an innovative solution.

Write innovation challenge guidelines

Clearly present the most important tender information with plan English and visual references

Innovation buying frameworks

Apply stakeholder management, agile methodologies, probity and risk frameworks to deliver great innovation outcomes.

Photo of a hand drawing below some puzzle pieces forming a light bulb on a yellow background

Innovation buying framework resources

Engage and manage the experts you need to support your project success.

Apply the agile buying methods to iterate and achieve great innovation outcomes.

Protect practices that foster innovation while navigating treatments for probity risk.

Apply your agency’s risk framework to an innovation buying project.

Set requirements and evaluate for innovation

Structure requirements that involve uncertainty and set outcome-focused evaluation criteria.

Hand holding a yellow paper lightbulb among question marks and arrows | Test and Buy Innovation | Digital NSW

Tools to help uncover problems, define outcomes, write requirements and prepare to evaluate against them

Crumpled paper forming a lightbulb with scattered pen and paper balls | Test and Buy Innovation | Digital NSW

Document outcome-focused requirements

Structure outcome focused requirements that involve uncertainty.

View more

Hands with pens around puzzle pieces shaped like a light bulb | Test and Buy Innovation | Digital NSW

Define evaluation criteria

Set flexible evaluation criteria that focus on outcomes.

View more

Probity risk treatments

Build confidence to balance probity risk with outcome rewards.

Shape the problem

Hold a problem-shaping workshop to frame the problem and desired outcome.

Choose whether to plan for scale

Learn about the pros and cons of planning for scale and make informed procurement decisions.

Design a buying pathway

Explore supplier engagement options to map a pathway that achieves your business objectives.

Apply your agency’s risk framework

Augment existing risk management frameworks by embedding an innovation risk mindset into each risk management step.

Organise people

Form a core buying team and brief the key people.

Key mobilisation milestones

The key milestones for effective agile alignment.

Conduct market research

Gather market intelligence across emergent technology domains and iteratively refine insights to manage uncertainty. 

Steps with faces from sad to happy, ending with a lightbulb, showing progress toward ideas | Test and Buy Innovation | Digital NSW

Market research resources

Support accurate and confident decision-making in the procurement process.

Iteratively gather insight to reduce risk, increase confidence and combat uncertainty.

Evaluate all the sources of market intelligence and what can be shared.

Scope and purpose of market research

Support accurate and confident decision-making in the procurement process.

The innovation buying journey

Learn how to navigate the stages and milestones of the innovation buyer journey.

Innovation Procurement | The innovation buying journey | Digital NSW

Innovation buying journey resources

Discover whether a need should be addressed and how to approach it.

Choose whether to plan for scale and explore engagement approaches.

Get the right people on the same page and kick off work.

Attract innovation with a challenge statement for the market to solve.

Iteratively gather market insights across emergent domains that involve a lot of uncertainty.

Take a staged approach to business cases and budgets to manage uncertainty.

Manage changes resulting from new information to manage risks and build certainty.

Structure outcome-focused requirements that involve uncertainty.

Set flexible evaluation criteria that focus on outcomes.

Document a compliant market approach that will achieve buying objective.

Apply stakeholder management, agile methodologies, probity and risk frameworks.

Identify, engage and manage the experts you need to support your project success.

Apply agile methodologies to support iterative testing and  achieve great outcomes.

Protect practices that foster innovation while navigating treatments for probity risk.

Balance risk and reward to achieve innovation outcomes while meeting procurement requirements.

Source

Coming soon

Manage

Watch this space

Amplified probity risk

Identify innovation buying probity risk and break down into innovation tactics that carry smaller manageable risks.

Write the innovation buying strategy

Use an innovation buying strategy template or tailor your own to accommodate uncertainty and complexity.

Understand and apply an agile framework

Bring agility to public sector procurement through iteration planning and defining an outcome-focused challenge statement.

Hand drawing a yellow light bulb | Test and Buy Innovation | Digital NSW

Tools to apply agile procurement, plan iterations and build insights iteratively

Drawn figure walking up steps with light bulbs symbolizing ideas above | Test and Buy Innovation | Digital NSW

Agile procurement framework

Access agile method resources for project management and procurement.

View more

Drawn figure walking up steps with light bulbs symbolizing ideas above | Test and Buy Innovation | Digital NSW

Develop your iteration plan

Learn how to apply an outcome focused, staged approach to your buying project.

View more

Get your procurement strategy approved

Document how your market approach will achieve buying objectives and comply with NSW Government procurement policies.

Lit light bulb atop wooden steps, symbolizing innovation and idea progression | Test and Buy Innovation | Digital NSW

Tools to help communicate your procurement strategy and get it approved

Hand drawing bridge to light bulb | Test and Buy Innovation | Digital NSW

Category and contract approach

Deal with uncertainty in buying categories and contracting templates.

View more

Hand-drawn path from idea to outcome with light bulb and paper boat | Test and Buy Innovation | Digital NSW

Write challenge guidelines

Concisely communicate key sections of the tender documentation in plain English.

View more

Crumpled paper forming light bulb with pen on blue background | Test and Buy Innovation | Digital NSW

Write procurement strategy

Deal with uncertainty and likely change in the procurement strategy template.

View more

Get ahead of probity and risk

Learn how to apply your agency's risk framework to an innovation buying project and navigate amplified probity risks.

Hands walking up steps to light bulb | Test and Buy Innovation | Digital NSW

Tools to manage innovation buying risk, probity and communicate simple challenge guidelines

Fingers walking up steps to light bulb | Test and Buy Innovation | Digital NSW

Manage innovation buying risk

Apply your agency’s risk framework to an innovation buying project.

View more

The word probity written on blocks | Test and Buy Innovation | Digital NSW

Probity when buying innovation

Protect practices that foster innovation while navigating treatments for probity risk.

View more

Pathway triage

Write challenge guidelines

Concisely communicate key sections of the tender documents in plain English.

View more

Align your need with strategy

Discover whether a need should be addressed and, if so, how to approach it.

Hand placing steps toward innovation with light bulb and arrow | Test and Buy Innovation | Digital NSW

Resources to align your need with strategy

Discover our definition of innovation and check if your buying project qualifies.

Learn the risks of assuming the solution, and value of an outcome focused buying approach.

Consider the key questions to ask and the pros and cons of buying, building or borrowing.

Staged approach to business cases

Build a case for change in a way that aligns with procurement stages, focusing first on the problem and benefits of solving it, and later on solutions and costs.

Align the buying team

Align your core buying team through a kick-off workshop.

Sources of market information

Understand the range of market information sources, how to make the most of them and when to share insights with others.

Define the challenge statement

Write an outcome-focused scope for the market to solve.

A rough guide to stages

Understand the stages when using a multi-stage approach including objectives, information needs, risk milestones, approvals, costs and processes.

Define evaluation criteria

Set flexible evaluation criteria that focus on outcomes.

Photo of three hands drawing around puzzle pieces forming a light bulb on a yellow background

Define evaluation criteria resources

Set flexible criteria early that allows suppliers time to meet mandatory criteria in later stages.

Design outcome focused stage criteria to progressively uncover more information.

Make procurement more accessible to suppliers by setting ‘just in time’ criteria.

Engage the right expert for each step

Identify, engage and manage the experts you need at each step of the buying journey to support your project success.

Staged approach to budgets

Use a stage-based approach to budgets to estimate the total contract value, identify delegated approvers and confirm funding availability before approaching the market.

Innovation scoping steps

The key steps for moving from a problem space to defining a clear innovation scope with an outcome-focused challenge statement.

Mobilise your buying team

Get the right people together and on the same page before and during the buying project.

Mobilise your buying team | Innovation Procurement | Digital NSW

Mobilisation resources

The key milestones for effective agile alignment.

A session to align buyer and procurement.

Form a core buying team and brief the key people.

Hold a kick-off workshop with your buying team.

Probity when buying innovation

Protect practices that foster innovation while navigating treatments for probity risk.

Photo of a hand drawing a line connecting wooden blocks spelling 'PROBITY' to a lightbulb icon, symbolising bridging integrity and innovation.

Probity resources for buying innovation

Break risk down into innovation tactics with smaller manageable risk.

Build confidence to balance probity risk with outcome rewards.